866-997-4948(US-Canada Toll Free)

MOBILE PHONES-UK-APRIL 2018

Published By :

Mintel

Published Date : Apr 2018

Category :

Telecommunications

No. of Pages : N/A

The trend towards full-screen displays and larger screens has seen prices for flagship smartphones grow considerably, motivating many people to keep their smartphones longer. With extended battery life a priority for consumers, incremental updates and minor innovations are proving insufficient in driving regular upgrades. A large proportion of people are buying phones outright to find cheaper, more flexible contracts with network providers. To accommodate this trend in the face of rising flagship smartphone prices, trade-in schemes and upgrade programmes will become increasingly important.

Table of contents

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Market struggling for growth as people delay upgrades
Figure 1: Value of mobile phone sales in the UK, 2012-22
Big two manufacturers dominate over 72% of the market
Figure 2: Smartphone ownership, by brand, February 2018
Smartphone ownership struggling for growth
Figure 3: Ownership of smartphones, January 2013-December 2017
Major product launches in 2017 boosted advertising spend
Figure 4: Total above-the-line, online display and direct mail advertising expenditure on mobile phones, 2014-17
The consumer
Over half of people have owned their phone more than a year
Figure 5: Length of time people have owned smartphone, February 2018
Mobile network providers remain the most popular purchase location
Figure 6: Purchase location, February 2018
Fingerprint scanning is the most popular unlocking method
Figure 7: Preferred method of unlocking smartphone, February 2018
Social media is the most popular smartphone activity
Figure 8: Most popular smartphone activities, February 2018
Most people stick to the same operating system and manufacturer
Figure 9: Smartphone behaviours, February 2018
Nearly two thirds of people will upgrade smartphones in the next two years
Figure 10: Plans to upgrade, December 2016 and February 2018
Extended battery life is a growing priority
Figure 11: Important factors when upgrading, February 2018
What we think
ISSUES AND INSIGHTS
Can innovations still entice consumers to upgrade regularly?
The facts
The implications
Insurance and screen replacement plans gain importance as prices rise
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Market struggling for growth as people delay upgrades
Smartphone ownership struggling for growth
Growth of ‘phablets’ encroaching on the tablet market
Economic factors remain important despite necessity of smartphones
Relaunches focus on nostalgia and second phone market
MARKET SIZE AND FORECAST
Market struggling for growth as people delay upgrades
Figure 12: Value of mobile phone sales in the UK, 2012-22
Figure 13: Value of mobile phone sales in the UK, 2012-22
Forecast methodology
MARKET DRIVERS
Smartphone ownership struggling for growth
Figure 14: Ownership of smartphones, January 2013-December 2017
Economic factors remain important despite necessity of smartphones
Figure 15: Proportion of consumers who have bought electrical goods in the last three months and expect to buy in the next three months, September 2015-February 2018
Growth of ‘phablets’ encroaching on the tablet market
Figure 16: Apple’s iPhone 8 and iPhone 8 Plus
Relaunches focus on nostalgia and second phone market
Figure 17: Nokia’s 8110 4G ‘Banana phone’
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Big two manufacturers dominate over 72% of the market
Apple overtakes Samsung as the most popular brand
Samsung launches new flagship S9 range
Apple’s iPhone X becomes the most expensive smartphone
Major product launches in 2017 boosted advertising spend
MARKET SHARE
Big two manufacturers account for over 72% of smartphone ownership
Figure 18: Smartphone ownership, by brand, February 2018
Apple overtakes Samsung as the most popular brand
Figure 19: Smartphone ownership, by brand, December 2016 and February 2018
iPhone ownership varies more than Samsung in terms of demographics
Figure 20: Ownership of Apple and Samsung smartphones, by selected demographics, February 2018
LAUNCH ACTIVITY AND INNOVATION
Samsung launches new flagship S9 range
Figure 21: Samsung’s Galaxy S9 smartphone
Apple’s iPhone X becomes the most expensive smartphone
Figure 22: Apple’s iPhone X
Google boosts market presence with innovative Pixel 2
Figure 23: Google’s Pixel 2 smartphone
Qi wireless charging becoming the standard technology
Figure 24: Apple’s wireless charging on iPhone 8 and iPhone X
Purism set to launch security-focused smartphone
Figure 25: Purism’s Librem 5 smartphone
ADVERTISING AND MARKETING ACTIVITY
Major product launches in 2017 boosted advertising spend
Figure 26: Total above-the-line, online display and direct mail advertising expenditure on mobile phones, 2014-17
Figure 27: Total above-the-line, online display and direct mail advertising expenditure on mobile phones, by media type, 2014-17
Television remains the key advertising outlet for phones
Figure 28: Total above-the-line, online display and direct mail advertising expenditure on mobile phones, by manufacturer, 2017
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 29: Attitudes towards and usage of selected brands, February 2018
Key brand metrics
Figure 30: Key metrics for selected brands, February 2018
Brand attitudes: Apple iPhone perceived as worth the higher price
Figure 31: Attitudes, by brand, February 2018
Brand personality: Google Pixel and Samsung Galaxy deemed the most fun brands
Figure 32: Brand personality – Macro image, February 2018
Google Pixel considered the most desirable brand, with iPhone considered expensive
Figure 33: Brand personality – Micro image, February 2018
Brand analysis
Samsung Galaxy is the most recommended brand
Figure 34: User profile of Samsung Galaxy, February 2018
Apple iPhone seen as an expensive and exclusive brand
Figure 35: User profile of Apple iPhone, February 2018
Google Pixel deemed innovative, fun and stylish
Figure 36: User profile of Google Pixel, February 2018
Sony Xperia considered user-friendly and reliable
Figure 37: User profile of Sony Xperia, February 2018
HTC lacks a strong brand identity
Figure 38: User profile of HTC, February 2018
Chinese brand Huawei viewed as basic but good value for money
Figure 39: User profile of Huawei, February 2018
THE CONSUMER – WHAT YOU NEED TO KNOW
Over half of people have owned their phone more than a year
Mobile network providers remain the most popular purchase location
Fingerprint scanning is the most popular unlocking method
Social media is the most popular smartphone activity
Most people stick to the same operating system and manufacturer
24% of people have broken the smartphone screen in the last two years
Nearly two thirds of people will upgrade smartphones in the next two years
Extended battery life is a growing priority
PURCHASE PATTERNS
Over half of people have owned their phone more than a year
Figure 40: Length of time people have owned smartphone, February 2018
Mobile network providers remain the most popular purchase channel
Figure 41: Purchase location, February 2018
Upfront payment is focused on retailers and manufacturers
The rising expense of flagship phones is supporting network contracts
Figure 42: Smartphone payment methods, February 2018
16-24-year-olds least likely to get smartphones from network providers…
…while men are most likely to pay for phones in full up front
SMARTPHONE SECURITY
Fingerprint scanning is the most popular unlocking method
Figure 43: Preferred method of unlocking smartphone, February 2018
Over half of iPhone owners prefer to use fingerprint scanners
Figure 44: Preferred method of unlocking smartphone, by brand owned, February 2018
SMARTPHONE ACTIVITIES
Social media is the most popular smartphone activity…
…closely followed by calls and messages
Figure 45: Most popular smartphone activities, February 2018
There is a clear age split in popular smartphone activities
Calls and SMS the only activities selected less by younger demographics
Figure 46: Most popular smartphone activities, by age, February 2018
Wide range of activities has driven storage capacity needs
BEHAVIOURS OF SMARTPHONE OWNERS
Most people stick to the same operating system and manufacturer
Free screen repair is set to grow in importance
Over half of people keep their old phone as a spare
Figure 47: Smartphone behaviours, February 2018
16-34-year-olds are the most likely to stick with OS and manufacturer
Figure 48: Smartphone behaviours, by age, February 2018
Those aged 18-24 and upgrading regularly are more likely to break screens
Figure 49: Target groups based on statements about smartphones – CHAID – Tree output, February 2018
Figure 50: Target groups based on statements about smartphones – CHAID – Table output, February 2018
PLANS TO UPGRADE
Nearly two thirds of people will upgrade smartphones in the next two years
Figure 51: Plans to upgrade, December 2016 and February 2018
Owners of Sony smartphones are more likely to upgrade
Figure 52: Plans to upgrade, by brand owned, February 2018
Price and incremental updates encouraging some to keep phones
Increased trade-in deals could boost upgrade affordability
Figure 53: Reasons for not upgrading, December 2016 and February 2018
IMPORTANT FACTORS WHEN UPGRADING
Extended battery life is a growing priority
Manufacturers are pushing wireless charging
Men are more likely to want bigger and better screens
Figure 54: Important factors when upgrading, February 2018
Improved camera quality is the second most important factor…
…and even more important for younger demographics
Figure 55: Important factors when upgrading, by age, February 2018
Vast majority of people focus on multiple upgrade factors
Figure 56: Repertoire of important factors when upgrading, February 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
Market size and forecast
Fan chart forecast
Value
Figure 57: Best- and worst-case forecast for the value of the UK mobile phone market, 2017-22
Brand research
Brand map
CHAID analysis – Methodology
Figure 58: Target groups based on statements about smartphones – CHAID – Table output, February 2018

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *